Section 8 Fair Market Rent (FMR) for ZIP 46133 - 2027

Investment Score for ZIP 46133

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

To determine if a landlord should buy in ZIP code 46133 (Glenwood, IN) for Section 8 investment, follow these steps:

Step 1: Does the Fair Market Rent (FMR) of $1,020 clear debt service on a property valued at $197,364?

• Yes: The FMR of $1,020 must cover the mortgage payment and other expenses associated with owning a property worth $197,364. Assuming a typical loan structure with a 30-year fixed-rate mortgage at an interest rate of 4%, the monthly principal and interest payment would be approximately $950. This means that the FMR of $1,020 would indeed cover the debt service, leaving some room for maintenance and other costs.
• No: If the monthly debt service exceeds $1,020, then the FMR does not sufficiently cover the costs of ownership. In this case, buying in Glenwood, IN, for Section 8 would not be advisable unless you can significantly reduce costs or increase rent.

Step 2: Is the market rent of $1,182 (from Census ACS) above, at, or below the FMR?

• Above: The market rent of $1,182 is higher than the FMR of $1,020. This indicates that landlords could potentially earn more from renting to non-Section 8 tenants, but they would still be able to cover their costs with Section 8 rents. It also suggests that there is strong rental demand in the area.
• At or Below: If the market rent were equal to or lower than the FMR, it would indicate a weaker rental market, making it harder to attract non-Section 8 tenants who might offer higher rents. However, since the market rent is above the FMR, this scenario does not apply here.

Step 3: Are 8.9% of residents renters and the average days on market (DOM) sufficient to meet demand?

• It Depends: With 8.9% of residents being renters, the rental market share is relatively low compared to many urban areas. However, the lack of data on the average days on market (DOM) makes it difficult to assess how quickly properties are rented out. If the DOM is short, indicating quick rentals, then the low percentage of renters might not be a significant issue. Conversely, if DOM is long, landlords might struggle to find tenants promptly, which could impact cash flow negatively.

In conclusion, based on the provided data, the FMR of $1,020 is sufficient to cover debt service on a $197,364 property. The market rent of $1,182 is above the FMR, suggesting strong rental demand. However, the limited rental market share and unknown DOM make the final decision dependent on additional local market analysis. Landlords should investigate the DOM and consider the potential for higher rents outside of Section 8 to ensure a stable investment strategy.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).

About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.